European utilities sector up 14% YTD 2026, outperforming Eurostoxx 600's 5% gain, driven by renewables and storage firms.
UBS holds Buy ratings on 13 stocks covering ~59% of sector market cap, preferring renewables over integrated utilities and continental Europe.
Top picks RWE, Orsted, Grenergy forecast strong growth—RWE 11% EPS CAGR to 2031, Grenergy ~40% net income CAGR to 2029.
UBS is negative on National Grid, Verbund and Drax, citing high premium, 16% EBITDA drop by 2027 and cost pressures respectively.